Need help!Potential multi family house

First-Time Home Buyer
1dFollow

Need help!Potential multi family house

Jake Lewis
Member since 2026 · 2 posts · 0 votes

Hello everyone. My name is Jake and this is my first post. I have been wanting to get into real estate but have been too scared to pull the trigger on anything so just looking for someone who has more experience that can give me some advice on which route I should take or if it’s even worth it for the asking price. I have about $177,000 in equity in my current home that I am looking to use to get me started in the real estate world. A multi family house came up on an off market properties page on Facebook and it’s right around the corner from me. They are asking $339,000 and say that it is already occupied by renters. Taxes in that area run roughly 6-7k a year. One half renting for $1800 and the other renting for $1560. I don’t yet have too much more information on it like who pays utilities and such but just wondering at first glance of numbers if it is worth looking more into and if so what would be my best option to use my current homes equity. I don’t currently have a mentor or anyone to learn from or get advice from so please be easy on me lol

0Reply
273 views

8 Replies

Jump to latestLatest
  • Marc Del Priore
    Lender · Philadelphia, PA · Member since 2024 · 51 posts · 16 votes
    1d

    Jake, welcome, and you are asking the right question before you pull the trigger. With about $177,000 of equity in your current home, most investors in your spot look at a home equity line for the down payment and closing costs, or a cash out refinance if the rate math still works. On the multi family itself, the two rents total $3,360 a month against a $339,000 price, so the deal will come down to taxes, insurance, and who pays utilities, which is worth nailing down before you offer. I am Marc with Royal Partners, and I am happy to give you straight numbers if you DM me the property location, your target down payment, and what your current home is worth.

    0Reply
  • Stephen Foster
    Member since 2026 · 21 posts · 5 votes
    1d

    Welcome, Jake. Good on you for asking before jumping in. I'm a mortgage broker, so here's the financing side. You've got three common ways to use that equity: (1) a HELOC or fixed second mortgage on your house, which lets you keep a low first-mortgage rate and borrow only the down payment and closing costs; (2) a cash-out refi of your house, which only makes sense if your current rate is close to today's market; (3) use the equity for the down payment, then put the duplex on an investor loan that qualifies mostly off its rents (a DSCR-type loan). Many people combine 1 and 3. Before any of that, run the deal honestly: subtract taxes, insurance, vacancy, repairs, any utilities you'd pay, and management from that $3,360 a month, then compare what's left to the new payment. Off-market Facebook deals are often wholesaler assignments, so ask who holds the contract and get the current leases, rent history and deposit info before agreeing on a price. If it still works, have a lender price both pieces side by side.

    0Reply
  • Redgy Saint-Germain
    Developer · Boston, MA · Member since 2017 · 249 posts · 135 votes
    1d

    Jake, the lenders covered how to tap the equity, so I'll just run the first glance numbers, since that's what you asked.

    Rents are $3,360 a month. Taxes at about $6,500 a year are around $540 a month, and insurance on a duplex is maybe $150 to $250 (get a real quote). Then I'd set aside about 10 percent of rent each for vacancy, repairs, and big future stuff like roofs and furnaces, so roughly $1,000 a month. That leaves around $1,600 a month before any loan.

    Here's the catch. 25 percent down on an investment loan is about $85k, and a loan on the other $254k at around 7 percent is about $1,700 a month in principal and interest. So it's already a little negative, and that's before you add the payment on the equity line you borrowed the down payment from.

    That doesn't mean walk away. It means the price may be high for those rents, or the rents may be under market. I'd check what similar units nearby actually rent for, get the real leases and find out who pays utilities, and look at the age of the roof, furnaces, and water heaters. Since it came off a Facebook page, ask whether you're dealing with the owner or a wholesaler.

    Also worth asking a lender about living in one side. An owner occupied loan needs a lot less down and usually a better rate, and that changes this math a lot.

    Redgy

    0Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 109 posts · 27 votes
    1d

    Good question, Jake. With about $177K of equity you have a few ways to fund this, like a HELOC or cash-out refi on your current home for the down payment, or a purchase loan on the duplex itself, and the right one depends on whether you'd live in one of the units. Before deciding, run the numbers after taxes, insurance, vacancy, maintenance and your loan payment, and ask for the leases and the actual rent roll since it's occupied. Also check whether taxes will be reassessed after the sale. I do lending and can walk through the funding options side by side on a quick call, my direct line and email are on my profile. (Drafted with AI assistance.)

    [email protected]330-548-3340
    0Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 261 posts · 94 votes
    1d

    Welcome, Jake — and smart move asking before you commit. The lenders here covered the financing side well, so I'll add the buyer's checklist: first, verify those rents against actual comps in the area, not just what the seller claims — a knowledgeable local agent can pull that in minutes. Second, on a tenant-occupied property, get the leases in writing, confirm the security deposit amounts, and ask for estoppel certificates so the tenants confirm the terms themselves. Third, find out who pays utilities before you run final numbers, since that swings the math a lot. And don't skip the inspection just because it's occupied — you need to know the roof, HVAC, and plumbing. Off-market can mean opportunity or overpriced; the numbers you verify are what tell you which.

    0Reply
  • Jake Lewis
    OP
    Member since 2026 · 2 posts · 0 votes
    1d

    Thank you guys for the replies. I will be reaching out to who posted it and find out if they are the owner and request everything that you guys suggested. I really appreciate the advice and everyone’s time!

    0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 260 posts · 97 votes
    1d

    The rental income looks promising at first glance, but I'd factor in taxes, insurance, maintenance, and vacancies before deciding. You may also have options to use your existing home equity without putting all of it into the purchase.

    What state is the property in, and have you explored financing options yet?

    0Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 598 posts · 382 votes
    7h

    Jake, at first glance in reference to the deal here are the numbers I am looking at PP $339k, taxes 7k insurance $1200. Rents $3360 combined. Assuming you put 25% as a down payment and the rate you get on this loan is 7.25% the monthly payment would be $2551.10. When you factor in 5% vacancy, 8% management, 10% capex it looks to make $186.10. The question now becomes are you comfortable making ~$200 a month after writing a check for ~90k to buy this property? Another question for you to ask yourself is how much it will cost you to get the equity out of your current property and are you comfortable doing this? Also, how old are the major components on the subject property? Roof, HVAC, electrical, pipes, does the property need an update? If you have any specific questions after reading the above feel free to give me a DM or text happy to be a resource.

    [email protected]208-600-2814
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free